Will AC prices go up in 2023?

HVAC | September 26, 2022

SEER2 Energy Changes

Will AC prices go up in 2023?

New Energy Changes Mean HVAC Prices Will Increase Jan. 1

If you’ve been waffling over your decision to replace that outdated HVAC system, waffle no more! Starting in 2023, you'll need to pay a great deal more for a new system if you wait.

Here’s why: Effective Jan. 1, the Department of Energy (DOE) is raising the minimum energy efficiency standards for heat pumps and central air conditioners, Bottom line—these changes will significantly increase the price of HVAC equipment as manufacturers redesign system components to meet these new requirements.

What You Need to Know

The government’s new energy regulations are based on new SEER ratings. SEER, which stands for seasonal energy efficiency ratio, is a rating system that refers to a measurement of efficiency given to HVAC equipment, such as central air conditioning systems or heat pumps. The higher the SEER number, the less energy you will use— which translates to less money spent on utility bills.

Beginning in 2023, the DOE is mandating changes in the efficiency of units and changing the way HVAC systems are tested (called SEER2). Basically, these new testing conditions will provide better data values and metrics to more accurately determine how an installed HVAC system performs.

As a homeowner, it’s important to learn how these changes may affect you. The biggest one being this—if you install a system prior to Jan. 1, you’ll save significantly on your purchase. Install after Jan. 1, and you’re looking at a more expensive unit.

As for the new SEER2 requirements, they vary from region to region. The current SEER and new SEER2 ratings are outlined (per area) in the chart below:
 

RegionCurrent SEERNew SEER / SEER2Sell-Through Deadlines
Air Conditioners (North) 13 SEER 14 SEER
13.4 SEER2
13 SEER units built before Jan. 1, 2023, can still be installed on or after Jan. 1, 2023
Air Conditioners
(Southeast & Southwest)
14 SEER 15 SEER
14.3 SEER2
Any units not meeting the new requirements cannot be installed on or after Jan. 1, 2023
Heat Pumps (Nationally) 14 SEER 15 SEER
14.3 SEER2
14 SEER units built before Jan. 1, 2023, can still be installed on or after Jan. 1, 2023

Energy Efficiency & Savings

Remember, while the upfront costs may be more for a new system in 2023, you will use less energy over time—which results in less money spent on those electrical bills. 

Schedule Your New HVAC Installation Today!

With all the big changes coming in January, ARS/Rescue Rooter wants you to know we are here for you. Whether you have questions about the new SEER2 standards or would like to schedule your HVAC installation before the end of the new year, we are ready and eager to help. We even offer financing options for every budget. Reach out to us today! Give us a call at 866-399-2885.

We hear so much talk about inflation and price increases, and it's usually easy to tune out. But if you think you might be in the market for a new AC system before the end of the year, you'll want to look sooner rather than later. Prices for new air conditioners will increase substantially on the first day of 2023 – and the main reason is NOT inflation.

New SEER2 AC Efficiency Standards For 2023

SEER stands for Seasonal Energy Efficiency Ratio, as measured by the U.S. Department Of Energy. It measures how much energy a system requires to produce cooling. The higher the SEER number, the less electricity an AC unit uses.

What’s different: Testing conditions were updated to more accurately reflect how equipment performs in the field instead of in laboratories. Current SEER testing does not accurately consider how ductwork affects results, for example.

  • SEER2 testing increases a key variable by a factor of five to address this.
  • Current HVAC equipment will have reduced ratings when measured by SEER2 standards. For example, a 15 SEER unit might register at 14.5 in SEER2.
  • Minimum SEER ratings for new equipment installations will increase to SEER 14 for the north region and to SEER 15 for southern states on Jan. 1, 2023.

Why it matters: Prices will increase substantially because manufacturers are redesigning HVAC system components to meet the new requirements before the end of the year.

  • The redesign includes matching components including furnaces, which also must meet new standards, and air handlers. In some cases, additional equipment may be required.
  • Supply, demand and materials cost increases will push up prices as well.

Legal compliance: There are no compliance requirements for consumers, but manufacturers, dealers, and contractors must follow the new standards or face legal penalties.

  • Manufacturers
  • cannot sell to dealers any equipment made to current standards after Dec. 31, 2022.
  • Dealers
  • will be able to sell their inventories as long as equipment is installed on Jan. 1 or later meets 2023 requirements.
  • Calculations
  • must use the “least efficient combination of indoor and outdoor units,” which also is referred to as the “coil only” rating posted on the energy guide on the product. Some current equipment will qualify, and some will not.

There’s Still Time To Save Big Money

A window of opportunity: If your current equipment is running well, you needn’t take any action. But if your AC is struggling or is getting more expensive to maintain, now is the time to act.

  • Manufacturers will be cutting back production of current equipment to avoid getting stuck with it at the end of the year. We have a good inventory now, but due to the unusually hot June, it is selling faster than usual.

Financing: We offer financing – you have a range of financing plans, whether you want to pay off fast or keep monthly payments low over a longer period.

What they’re saying: "I had a new install in the spring through Clark this spring- with quotes from 3 different companies, Clark was the most reasonably priced. They have since been out for routine maintenance for the warranty - all of which has been free (for the first year). The tech is informative, professional, and personable. We will recommend Clark Heating and Cooling to all of our family and friends for their HVAC needs."

Get a free estimate: We will be happy to schedule a free AC System estimate now before these changes go into effect.

What is the new refrigerant for 2023?

Beginning next year, new cooling systems will contain a refrigerant called R-454b with a lower global warming potential. This refrigerant is more environment-friendly than its predecessors but also mildly flammable. You can rest assured our ACS Air Conditioning Services technicians know how to handle it safely.

What is the future of AC?

Current ACs aren't going to cut it Over the next few decades, the global demand for air conditioning is expected to skyrocket. According to the International Energy Agency, the number of AC units in buildings across the world should reach 5.6 billion by 2050, up from only around 2 billion units today.

Is 410a Freon going away?

R-410A is scheduled for elimination from all new systems in 2023. Many HVACR contractors are not prepared for the change, and there are many questions. Here are some answers. Why January 2023?

Is AC a good investment?

Most homeowners will find that a high-efficiency air conditioner is a great investment for one or more of the following reasons: Lower utility bills. As we mentioned above, high-efficiency air conditioners cost less to operate than lower efficiency systems.